Establish policies for revenue recognition. Certain types of revenue (including: dues; subscriptions; and meeting registration fees) may be received in advance of the product or service
Compare all check logs for cash receipts to the amounts applied to receivables. This will be done by an individual separate from those processing cash receipts and accounts receivable.
The internal control system needs to be documented (the expected results or outcomes of the system and what everyone does need to be put in writing) and constantly evaluated. A continuou
Medium-sized nonprofit organizations may have the size and volume of activities that call for internal control systems in excess of the resources available to deliver such systems. This situation does not justify inadequate internal controls. It does emphasize the need to constantly evaluate the internal costs to make sure that scarce resources are best applied.
Creating a policy is like making a decision when you have time to be thoughtful, to do adequate research, and to consult colleagues and other professionals rather than making decisions in haste as